TNB buys onshore wind portfolio in UK for RM806.8m

TENAGA Nasional Bhd’s (TNB) whollyowned subsidiary, Vantage RE Ltd has completed the acquisition of 100% stake in a 97.3 megawatts (MW) onshore wind portfolio in the UK from a number of funds advised by Capital Dynamics Sdn Bhd, an independent global private asset management firm and one of the world’s leading clean energy investors, for a total consideration of £145.9 million (RM806.83 million). 

This acquisition, following TNB’s maiden venture into the UK offshore wind market last October, marks another significant milestone in TNB’s strategy to grow its global renewable energy (RE) portfolio while strengthening its presence in a focus market. 

The wind portfolio comprises operational onshore wind farms across 11 sites in the UK that were developed under either the Feed-in Tariff or Renewable Obligation Certificate subsidy regimes, which are expected to provide stable longterm revenues. 

Upon the completion of this acquisition, Vantage RE’s total operational RE capacity will grow by 23% from 433MW to 530MW. 

This additional onshore wind capacity will diversify Vantage RE’s existing RE technology mix and improve the balance of its portfolio’s electricity generation profile throughout the year. 

“This acquisition represents the continued success of our strategy execution to expand TNB’s RE portfolio in our focus markets such as the UK and Europe while accelerating TNB’s journey in delivering its global environmental, social and governance (ESG) vision. 

“We firmly believe in an innate responsibility towards a better world and brighter lives anchored on TNB’s aspiration towards net zero emissions by 2050. TNB’s Sustainability Pathway is underpinned by our commitment to reduce 35% of our emissions intensity as well as 50% of our coal generation capacity by 2035,” TNB’s president and CEO Datuk Baharin Din stated in a release yesterday. 

Baharin added this strategic acquisition of brownfield assets underpinned by subsidy regimes would allow TNB to fully benefit from stable revenues and build financial resilience to weather the economic challenges aggravated by Covid-19. 

It will move TNB a step closer to transitioning towards a new energy future of low-carbon generation consistent with TNB’s Sustainability Pathway and overall ESG vision. 

“The continuous development of our internal capabilities in onshore wind is key as we pursue onshore wind opportunities globally and create value through operational excellence. By acquiring this portfolio, we are building a platform to broaden our technology know-how in onshore wind and provide further capability development within the group,” he added. 

Vantage RE CEO Vian Davys said the acquisition of this onshore wind portfolio allows Vantage RE to move into managing and operating larger wind turbines in the UK. 

“We looked at the depth and availability of the assets as well as the potential value creation to ensure that every strategic investment provides revenue certainty and positive financial contribution. This is a crucial milestone for Vantage RE and TNB in the build-up of internal capability in onshore wind,” Vian said. 

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